The US dollar is losing bullish momentum above the 111.00 level against the Japanese ye, despite the recent surge in the value of the greenback. The USDJPY pair could reverse back towards the pivotal 110.90 level if buyers fail to move price above the 111.60 resistance area. Technical indicators across the four-hour time frame are also starting to appear overstretched.
If the USDJPY pair falls to move above the 111.60 level, sellers may test towards the 110.90 and 110.40 support levels.
If bulls move price above the 111.60 level, further gains towards the 112.00 and 112.25 levels appears likely.
